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Health Sciences San Diego 1.0 Prepared By Health Sciences San Diego 1.0 Prepared By: CSUSM FEMBA Cohort Class 2016 Fall 2015 Health Sciences San Diego 1.0 Table of Contents TABLE OF TABLES III 1. EXECUTIVE SUMMARY IV 1.1. KEY DEMOGRAPHICS 1 2. HEALTHCARE INDUSTRY ERROR! BOOKMARK NOT DEFINED. 2.1. KEY PLAYERS 3 2.1.1. UC SAN DIEGO HEALTH 3 2.1.2. SCRIPPS HEALTHCARE 5 2.1.3. KAISER PERMANENTE 5 2.1.4. SHARP HEALTHCARE 5 2.1.5. VETERANS AFFAIRS 6 2.1.6. OTHER HEALTHCARE PROVIDERS 6 2.2. CRITICAL FACTORS 6 2.3. KEY PLAYER INTERACTIONS IN SAN DIEGO 8 2.4. INDUSTRY DEVELOPMENT 10 2.4.1. FACILITIES AND EXPANSION 10 2.4.2. HEALTHCARE INFORMATION TECHNOLOGY (HIT) 11 2.5. INDUSTRY CHALLENGES 12 3. BIOTECHNOLOGY INDUSTRY 15 3.1. CRITICAL FACTORS 15 3.2. KEY PLAYERS 18 3.2.1. THERMO FISHER 18 3.2.2. ILLUMINA 18 3.2.3. PFIZER 19 3.2.4. JOHNSON & JOHNSON 20 3.2.5. NOVARTIS 21 3.3. KEY PLAYER INTERACTIONS IN SAN DIEGO 21 3.4. INDUSTRY DEVELOPMENT 24 3.4.1. INDUSTRY TRENDS – BIOTECHNOLOGY 24 3.4.2. INDUSTRY TRENDS – PHARMACEUTICAL 26 3.4.3. INDUSTRY TRENDS – DIAGNOSTICS 27 3.5. INDUSTRY CHALLENGES 27 3.5.1. COMPETITION OF BIOTECH AND PHARMACEUTICAL IN SAN DIEGO 28 3.5.2. FUNDING, TAXES, AND REGULATION OF BIOTECH AND PHARMACEUTICAL IN SAN DIEGO 28 4. BIOMEDICAL DEVICES INDUSTRY 30 HSSD 1.0 Page i Health Sciences San Diego 1.0 4.1. CRITICAL FACTORS 30 4.2. KEY PLAYERS 33 4.2.1. NUVASIVE 33 4.2.2. MEDTRONIC 34 4.2.3. RESMED 35 4.2.4. DJO GLOBAL INC. 36 4.3. TRENDS 37 4.4. KEY DEVELOPMENTS 38 4.4.1. MEDICAL EQUIPMENT TECHNOLOGY 38 4.4.2. THE 3D PRINTING REVOLUTION 39 4.4.3. BOOSTING MEDICAL DEVICE SAFETY WITH BIG DATA ANALYTICS 39 4.4.4. OUTLOOK 40 4.5. CHALLENGES 40 4.5.1. CAPITAL AND FUNDING 40 4.5.2. CHANGING REGULATIONS 41 5. EDUCATION AND RESEARCH INSTITUTES 43 5.1. KEY PLAYERS 43 5.2. CRITICAL FACTORS 43 5.2.1. UNIVERSITY ACCREDITATION 44 5.2.2. UNIVERSITY RANKING 45 5.2.3. PARTNERSHIPS WITH HEALTH SCIENCE INDUSTRIES 46 5.2.4. UNIVERSITY DISCIPLINES 49 5.2.5. UNIVERSITY RESEARCH AND RECOGNIZED STAFF 52 5.3. INDUSTRY DEVELOPMENT 54 5.3.1. RESEARCH INSTITUTIONS AND UNIVERSITIES 54 5.3.2. EMERGING INDUSTRY AND EDUCATIONAL DEVELOPMENTS 56 5.3.3. COMPETITIVE ADVANTAGE 58 5.4. INDUSTRY CHALLENGES 59 6. OVERALL CHALLENGES AFFECTING HSSD 1.0 62 6.1.1. COST OF LIVING 62 6.1.2. GEOGRAPHIC LOCATION 62 6.1.3. UTILITY CONSTRAINTS IN SAN DIEGO 63 7. CONCLUSION 65 7.1. LIMITATIONS 66 8. RECOMMENDATIONS 67 9. REFERENCES 68 HSSD 1.0 Page ii Health Sciences San Diego 1.0 Table of Figures Figure 1. Concept Image of VA Project .......................................................... 10 Figure 2. Depiction of San Diego Health Exchange Functionality .................. 12 Figure 3. Primary Care Health Professional Shortage Area ............................ 14 Figure 4. California Counties ........................................................................ 60 Table of Tables Table 1. Hospital National Rankings ............................................................... 3 Table 2. UCSD Health .................................................................................... 4 Table 3. UCSD Health .................................................................................... 4 Table 4. NuVasive – Total Revenue ................................................................ 33 Table 5. Accredited Nursing Programs, San Diego ......................................... 43 Table 6. U.S. News National Ranking ............................................................ 46 Table 7. U.S. News Regional Ranking ............................................................ 46 Table 8. USD Volunteer Opportunities .......................................................... 47 Table 9. SDSU Partnerships ......................................................................... 48 Table 10. PLNU Volunteer Opportunities ...................................................... 48 Table 11. CSUSM Partnerships ..................................................................... 49 Table 12. UCSD Programs ............................................................................ 50 Table 13. USD Programs .............................................................................. 51 Table 14. SDSU Programs ............................................................................ 51 Table 15. CSUSM Programs .......................................................................... 52 Table 16. PLNU Programs ............................................................................. 52 Table 17. NIH Funding by Institution (2015) ................................................. 55 Table 18. SD to Bay Area .............................................................................. 60 HSSD 1.0 Page iii Health Sciences San Diego 1.0 1. Executive Summary The 2016 California State University San Marcos (CSUSM) Fully Employed Master of Business Administration (FEMBA) cohort conducted research as a first step to positioning San Diego County as an internationally recognized hub for Health Sciences. Health Science San Diego 1.0 (HSSD 1.0) is an analysis of the current landscape of the Health Sciences industry of San Diego County. Though there have been multiple reports and studies that discuss San Diego County in terms of it being a hub of biomedical technology, this report will serve as the foundation for HSSD 2.0 and HSSD 3.0 which will be completed by future CSUSM FEMBA cohorts. HSSD 1.0 will provide comprehensive information related to the different industries that make up all of San Diego County’s Health Sciences. The information gathered will help guide future cohorts to determine how to maintain San Diego County as one of the leaders in the industry, and ultimately how San Diego County can become the number one leader for innovation and job creation. Currently, San Diego County is an internationally recognized region for Health Sciences, but is only ranked fourth in California for jobs related to the industry and second in the nation as a Life Sciences hub. This study presents findings from an analysis of the current Health Sciences industry in San Diego. Through preliminary research, we have categorized the Health Sciences industry into four major categories: Healthcare, Biotechnology, Biomedical Devices, Education and Research Institutes. The key components of each category will include the following topics: • Critical Factors: An examination of leadership and an assessment of which critical factors are involved in making a company or entity an industry leader. • Key Players: Current key players will be identified in each particular industry. This section will compare and contrast the various key player’s strengths and weaknesses in depth. Most importantly, it will provide insight into how the competing companies interact with each other and how their relationships foster advancements in the industry. • Industry Developments: This area analyzes the industry developments in San Diego for each category. Specifically, we will address the current state of each industry in terms of size, presence, and growth. Included is an explanation of how these developments are pushing the local industry into the national forefront. Following this analysis will be the topic of industry trends. HSSD 1.0 Page iv Health Sciences San Diego 1.0 • Challenges: The challenges for each industry will be identified and will be specific to San Diego. Challenges can include anything from funding, legal issues, research, talent acquisition, and government regulations. Within the past 10 years, San Diego County's Life Sciences sector has grown faster than any other counties in California. While other counties saw a decline in Life Sciences and Health Care during the Great Recession, San Diego County had significant growth in these fields. It is quite clear from the research conducted in this study that UCSD plays a major role in San Diego’s Health Sciences industry. It is one of the main accelerators of innovation and job creation for the Health Sciences industry in San Diego. Education and academic research is the cornerstone of innovation and industry clustering as explained by Porter’s cluster theories and models. The number of schools and the size of the region may limit San Diego, but research institutes and incubator programs can be created at any time. After evaluating the research in this study, it is clear that UCSD plays a major role in San Diego’s Health Sciences industry. It is one of the main accelerators of innovation and job creation for the Health Sciences in San Diego. Though there are a number of research institutes that partner with the various industries discussed in this study, UCSD is a huge influence. Education and academic research are the cornerstone of innovation and industry clustering. In order for San Diego to continue growth in the Health Sciences industry, additional funding for education is critical. First, it needs to be established that schools in San Diego are keeping up with the current demand in population growth as it pertains to healthcare. Our analysis indicates there is a direct correlation between funding available for research institutes and job growth in that same region. Second, it is imperative for academia to continue advancing innovation and development in order to sustain brilliant minds, ideas, and job growth in San Diego. In addition to UCSD contributing to this industry, the California State Universities, such as CSUSM are doing their part to provide programs to help students get the education needed to succeed in this rapidly growing industry. CSUSM recently added Health Science
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